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Our Interest Rates Explained

How changes to the Bank of England base rate could affect your Stewardship loan repayments

 

All loans provided by Stewardship are on a Variable Rate of interest known as the Standard Stewardship Lending Rate (SSLR) which is calculated annually and payable monthly by our clients.  

This rate is set by our Finance & Investment Committee who consider recommendations presented to them by Stewardship’s Lending Committee* who regularly monitor the cost of funds in the UK financial services sector, including any movement to the Bank of England (BoE) base rate. Any change in the Bank of England Base Rate can influence the rates of both existing and new loans provided by Stewardship.   

Where there is a change of at least 0.5% (either one-off or incrementally) to the Bank of England Base Rate (either as a one-off or cumulative amount), a formal review of the SSLR is triggered. In the event of an agreed change to the SSLR, we will provide you with at least 60 days notice of an increase or decrease in the rate to enable you to prepare for changes to your monthly repayments.  However, if we decide that the SSLR is to remain unchanged, an amendment to the SSLR following any future BoE base rate change/s may still be considered by our trustees, even when those future changes are less than 0.5%. 

We will update your monthly Direct Debit payment after we provide you with 60 days of written notice.   

We understand changes to the rate of interest payable may cause challenges for some clients. If you experience any difficulties repaying your loan, please contact us at [email protected] and we will be happy to discuss how we might be able to support you. 

Thank you for trusting Stewardship with your lending requirements and we look forward to continuing to partner with you. 

 

*Stewardship’s Finance and Investment Committee comprises several trustees, and co-opted members with appropriate specialist expertise; relevant members of our Executive Leadership Team are also in attendance.  Stewardship’s Lending Committee is a sub-committee of the Finance and Investment Committee.